Malaysian Mosaics to raise tile prices

Tiles maker Malaysian Mosaics Bhd (MMB) will raise prices by 20 per cent in the face of costlier petrol, diesel and natural gas.

"We have no choice but to pass on some of the higher costs. We have already absorbed as much as we can," said chief executive officer Thomas Karl Rapp.

MMB is one of seven major tile manufacturers in Malaysia. It ranks third after White Horse Bhd and Guocera. Its three factories in Kluang, Johor, are able to produce 15 million sq cu metres of tiles per year.

"We are known for our premium quality tiles. While we have decided to source felspar locally to cut down transport cost from Thailand, we can only reformulate some of our tiles to an extent," he said after a shareholders' meeting in Petaling Jaya yesterday.

Following the government's decision to raise petrol and diesel prices, tile makers have been paying more for transport services.

It will also have to pay more for natural gas as the government is reducing subsidies that have been keeping prices low.